AccountancyISCO 3324

Commodity trader

A commodity trader is a person who buys and sells physical goods and raw materials on an exchange, among them gold, cattle, oil, cotton and wheat.

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Rate 5 of the 12 essential skills of this occupation (European ESCO data). No account needed.

analyse market financial trends

perform financial risk management in international trade

analyse economic trends

negotiate with stakeholders

negotiate sale of commodities

About commodity trader

The trader receives and executes buy and sell orders, negotiates the terms of sale and the delivery of goods, places bids and calculates the cost of a transaction. When negotiating the sale of commodities, the trader agrees not only a price but a grade, a delivery window, a place of delivery and who carries the cost if any of them slips.

The trader studies market conditions for particular commodities, their price trends and the demand for them, and reports those findings to the employer. The trader also analyses economic trends. Positions are held and orders sent in trading software.

The trader analyses financial risk, manages financial risk in international trade, where currency and transport add to the price risk, and works within the jurisdiction of the financial regulator that supervises the market being traded. Knowledge of economics and of financial markets underpins all of it. Licensing requirements are set by national financial supervision rules.

European Skills Framework

Skills and knowledge areas required for this occupation based on European classification.

Essential (12)

economicseconomicsEconomic principles and practices, financial and commodity markets, banking and the analysis of financial data.financial marketsfinancial marketsThe financial infrastructure which permits trading securities offered by companies and individuals govern by regulatory financial frameworks.trading softwaretrading softwareThe finance and trading integrated software solutions.commercial lawcommercial lawThe legal regulations that govern a specific commercial activity.financial jurisdictionfinancial jurisdictionFinancial rules and procedures applicable to a certain location, whose regulatory bodies decide on its jurisdiction.analyse market financial trendsanalyse market financial trendsMonitor and forecast the tendencies of a financial market to move in a particular direction over time.perform financial risk management in international tradeperform financial risk management in international tradeEvaluate and manage the possibility of financial loss and non-payment following international transactions, in the context of foreign exchange market. Apply instruments like letters of credit.analyse economic trendsanalyse economic trendsAnalyse developments in national or international trade, business relations, banking, and developments in public finance and how these factors interact with one another in a given economic context.negotiate with stakeholdersnegotiate with stakeholdersNegotiate compromises with stakeholders and strive to reach the most beneficial agreements for the company. May involve building relationships with suppliers and customers, as well as ensuring product...negotiate sale of commoditiesnegotiate sale of commoditiesDiscuss client's requirements for buying and selling commodities and negotiate their sale and purchase in order to obtain the most beneficial agreement.analyse financial riskanalyse financial riskIdentify and analyse risks that could impact an organisation or individual financially, such as credit and market risks, and propose solutions to cover against those risks.handle financial transactionshandle financial transactionsAdminister currencies, financial exchange activities, deposits as well as company and voucher payments. Prepare and manage guest accounts and take payments by cash, credit card and debit card.

Optional (14) — show

financial productsfinancial productsThe different types of instruments that apply to the management of cash flow that are available on the market, such as shares, bonds, options or funds.banking activitiesbanking activitiesThe broad and continuously growing banking activities and financial products managed by banks ranging from personal banking, corporate banking, investment banking, private banking, up to insurance, fo...financial forecastingfinancial forecastingThe tool used in performing fiscal financial management to identify revenue trends and estimated financial conditions.international commercial transactions rulesinternational commercial transactions rulesPre-defined commercial terms used in international commercial transactions which stipulate clear tasks, costs and risks associated with the delivery of goods and services.international businessinternational businessThe processes related to production or distribution of goods and services across borders.statisticsstatisticsThe study of statistical theory, methods and practices such as collection, organisation, analysis, interpretation and presentation of data. It deals with all aspects of data including the planning of ...actuarial scienceactuarial scienceThe rules of applying mathematical and statistical techniques to determine potential or existing risks in various industries, such as finance or insurance.trace financial transactionstrace financial transactionsObserve, track and analyse financial transactions made in companies or in banks. Determine the validity of the transaction and check for suspicious or high-risk transactions in order to avoid mismanag...maintain records of financial transactionsmaintain records of financial transactionsCollate all the financial transactions done in the daily operations of a business and record them in their respective accounts.negotiate sales contractsnegotiate sales contractsCome to an agreement between commercial partners with a focus on terms and conditions, specifications, delivery time, price etc.negotiate pricenegotiate priceArrange an agreement on price of products or services provided or offered.operate financial instrumentsoperate financial instrumentsWork with financial instruments such as stocks, bonds, mutual funds and derivatives.forecast economic trendsforecast economic trendsGather and analyse economic data in order to predict economic trends and events.negotiate buying conditionsnegotiate buying conditionsNegotiate terms such as price, quantity, quality, and delivery terms with vendors and suppliers in order to ensure the most beneficial buying conditions.

Related Occupations

Occupations that need many of the same essential skills, so the move between them is shortest.

commodity broker9 shared essential skills foreign exchange trader9 shared essential skills foreign exchange broker8 shared essential skills futures trader7 shared essential skills stock trader7 shared essential skills financial trader6 shared essential skills securities broker6 shared essential skills securities trader6 shared essential skills

Frequently asked questions

What does a commodity trader do?

Commodity traders use negotiation techniques to sell and buy physical goods and raw materials such as gold, cattle, oil, cotton and wheat on the trading floor. They receive and implement purchasing and selling instructions and negotiate the terms of sale and delivery of commodities. Commodity traders do research about market conditions of specific commodities, their price trends and demand in order to inform their employers, they make bid offers and calculate the cost of transactions.

What skills does a commodity trader need?

A commodity trader needs 12 essential skills, including economics, financial markets, trading software, commercial law, financial jurisdiction.

Will AI replace commodity trader jobs?

The AI disruption score for commodity trader is 82/100 (very high risk). Skills most exposed to automation: maintain records of financial transactions, trace financial transactions, financial forecasting. Most resilient: negotiate with stakeholders, negotiate price, negotiate buying conditions.

AI Replacement Risk

82/ 100

Very High Risk

Low riskHigh risk

Skills most at risk from AI

maintain records of financial transactions trace financial transactions financial forecasting

Skills resilient to automation

negotiate with stakeholders negotiate price negotiate buying conditions

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Quick Facts

SectorAccountancy

ISCO GroupBusiness and administration associate professionals

Essential Skills12

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